Make a Great Save! WE'RE PUTTING AWAY MORE MONEY. . . BUT ARE WE HITTING THE TARGET? Money Mail

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Byline: CHARLOTTE BEUGGE

BRITONS are saving the most they've done for years, ploughing cash into National Savings & Investments, building society savings accounts and investment funds. But are we putting our money in the right places?

CHARLOTTE BEUGGE explains the problem - and offers solutions.

CASH: THE FIRST STEP

FIGURES from Portman Building Society suggest that only 11 pc of the adult population has contributed to a cash mini Isa this tax year, which started on April 6. And out of the 30.5 million UK taxpayers, just 5.17 million have a cash mini Isa for any tax year.

Cash mini Isas pay tax-free interest, tend to have higher interest rates than other accounts, and most offer instant access to your money, so they should be your first savings port of call.

The best cash Isa can pay up to [pounds sterling]45 more interest than the worst on a [pounds sterling]3,000 balance over a year.

Top deals include Halifax's phonebased Isa Saver Direct paying 5 pc on a minimum [pounds sterling]1 and Yorkshire Building Society's internet-only E-Isa at 4.9 pc on [pounds sterling]10. In the High Street Nationwide pays 4.6 pc on [pounds sterling]1. You can invest up to [pounds sterling]3,000 each tax year in a cash mini Isa.

Next on your list is making sure the rest of your savings aren't in low interest rate accounts. There would be a massive [pounds sterling]237.50 difference in …